Exercise 16.9 (Algorithmic) Break-Even in Units

Gelbart Company manufactures gas grills. Fixed costs amount to $37,518,000 per year. Variable costs per gas grill are $525, and the average price per gas grill is $1,500.

Required:

1. How many gas grills must Gelbart Company sell to break even? gas grills

2. If Gelbart Company sells 41,210 gas grills in a year, what is the operating income? $

3. If Gelbart Companys variable costs increase to $555 per grill while the price and fixed costs remain unchanged, what is the new break-even point? If required, round your answer to the nearest whole number. gas grills